SPL InduStrIeS Ltd. · · 2015-08-20SPL InduStrIeS Ltd. 1 SPL InduStrIeS Ltd. CIN : ... 2014-15 Profit/(Loss) before Exceptional & Extraordinary Items 56,73,812 ... SHARE CAPITAL

SPL InduStrIeS Ltd.

1

SPL InduStrIeS Ltd.CIN : L74899DL1991PLC062744

Registered Office: C-2/54, Rajasthali Appartments, 5th Floor, Pitampura, Delhi-110034. E-mail: [email protected]; Website: www.spllimited.com

NOTICE(Note: The business of this meeting may be transacted through electronic voting system)

The 24th Annual General Meeting of the members of SPL INDUSTRIES LIMITED will be held on Saturday, the 26th day of September, 2015 at 9.00 AM at INDIA CORPORATE CENTRE, J-2/B-1, MOHAN COOPERATIVE, MATHURA ROAD, NEW DELHI-110044 to transact the following business-

ORDINARY BUSINESS:

1. ToconsiderandadopttheauditedFinancialStatementsoftheCompanyforthefinancialyearendedMarch31,2015togetherwiththereportsof the Director’s and Auditor’s thereon.

2. To appoint a Director in place of Mr. Vijay Jindal (DIN 00231517), who retires by rotation , and being eligible, has offered himself for re-appointment.

3. To appoint a Director in place of Mr. Arun Kumar (DIN 01092779), who retires by rotation, and being eligible, has offered himself for re-appointment.

4. ToappointAuditorand in thisregardtoconsiderand if thoughtfit, topasswithorWithoutmodification(s) thefollowingResolutionasanOrdinary Resolution:

“RESOLVED THAT pursuant to the provisions of Section 139(2) and 142(1) of the Companies Act,2013 the reappointment of the statutory auditorsofthecompanyM/s.SinghiChugh&Kumar,(FRNo.013613N)CharteredAccountants,beandisherebyratifiedbythemembersofthecompanyforthefinancialyear2015-16atsuchremunerationasmaybedeterminedbytheBoardofDirectorsofthecompany.”

ByorderoftheBoardofDirectorsFor SPL INDUSTRIES LIMITED

Place : New Delhi (MUKESH AGGARWAL)Date : 5th August, 2015 Managing Director

Notes

1. A member entitled to attend and vote at the Meeting is entitled to appoint a proxy and a proxy need not be a member of the company.

2. Theproxyformmustbedepositedattheregisteredofficeofthecompanynotlessthan48hoursbeforethescheduledhourofcommencementof the meeting.

3. Members/Proxiesshouldbringtheirattendanceslipsdulyfiledinforattendingthemeeting.

4. Members are requested to bring their copy of the Annual Report with them at the Annual General Meeting, as the copies of the report will not be circulated at the meeting.

5. TheRegisterofMembersandShareTransferBooksoftheCompanywillremainclosedfrom16th day of September, 2015 to Saturday, the 26th day of September, 2015( both days inclusive).

6. The relevant Explanatory Statement pursuant to Clause 49 of the Listing Agreement read with Section 102(1) of the Companies Act, 2013 is enclosed.

7. AlldocumentsreferredtointheaccompanyingNoticeareopenforinspectionattheRegisteredofficeofthecompanyonallworkingdaysexpect Saturday between 11.00 AM to 1.00PM up to the date of the Annual General Meeting.

8. Members who have not registered their email addresses so far are requested to register their e-mail address for receiving all communication including Annual Report, Notices, Circulars etc from the company and its Registrar and Transfer Agent electronically.

9. The details of Director who are proposed to be reappointed are given in Corporate Governance Report.

10. Voting through electronic means:

In terms of the provisions of section 108 of the Companies Act,2013( the Act) read with Rules 20 of the Companies (Management and Administration)Rules,2014(hereinaftercalled“theRules”forthepurposeofthissectionofthenotice)andclause35BoftheListingAgreement,

2

SPL InduStrIeS Ltd.the Company is providing facility to exercise votes on the items of business given in the Notice through electronic voting system, to members holdingsharesasonSeptember19,2015beingtherecorddateforthepurposeofRule20(3)(vii)oftheRules)fixedfordeterminingvotingrights of the members, entitled to participate in the voting process through e-voting platform provided by Karvy Computershare Pvt. Ltd.

The instruction for e voting are as under:

A For members who receive notice of annual general meeting through e- mail:

1 Use the following URL for e-voting https://evoting.karvy.com

2 Enter the login credentials i.e. User ID and Password mentioned in your email. Your Folio No/DP ID-Client ID will be your User ID. However, if you are already registered with Karvy for e-voting, you can use your existing User ID and Password for casting your votes.

3 Afterenteringthedetailsappropriately,clickon“LOGIN”

4 You will reach the Password change menu wherein you are required to mandatorily change your password. The new password shall comprise of minimum 8 characters with at least one upper case (A-Z), one lower case(a-z), one numeric value (0-9) and a special character. The system will prompt you to change your password. It is strongly recommended not to share your password with any otherpersonandtakeutmostcaretokeepyourpasswordconfidential.

5 You need to login again with the new credentials.

6 On successful login, the system will prompt you to select the EVENT i.e SPL INDUSTRIES LTD.

7 On the voting page, the number of shares( which represent the number of votes) as held by the member as on the Cut Off date will appear.Ifyoudesiretocastallthevotesassenting/dissentingtotheResolution,thenenterallsharesandclick“FOR/AGAINST”asthecasemaybeorpartiallyin“forandpartiallyin“against:butthetotalnumberofvotestakentogethershouldnotexceedyourtotalshareholdingasontherecorddate.Youmayalsochoosetheoption“ABSTAIN”andsharesheldwillnotbecountedundereitherhead.

8 MembersmayalternativelycasttheirvotesusingtheBallotFormwhichissentalongwiththisnotice

B For members who receive the notice of annual general meeting in physical form:

1 Members holding shares either in demat or physical mode who are in receipt of Notice in physical form, may cast their votes using theBallotFormprovidedinthemeeting..

2 PursuanttoClause35BoftheListingAgreement,membersmayfillintheBallotformprovidedinthemeetingandsubmitthesameinsealedenvelopetotheScrutinizer,MrDeepakSomiya,PracticingCompanySecretary.

3 The e-voting period and Portal will remain open for voting from 22nd September, 2015 (9.00AM) till 24th September, 2015 (6.30PM)

4 TheCompanyhasappointedMr.DeepakSomiyahavingaddressF-7ADefenceEnclave,GoylaTejpurRoadNearGoylaKhurd, NewDelhi-110071.astheScrutinizertoe-votingprocessincludingvotingthroughBallotFormreceivedfromthemembersinafairand transparent manner.

5 TheScrutinizershallwithinaperiodnotexceeding3(three)workingdaysfromtheconclusionofthee-votingperiodunblockthevotesinthepresenceofatleast2(two)witnessandmakeaScrutinizer’sreportofthevotescastinfavouroragainst,ifany,forthwith to the chairman of the company.

6 Subjecttothereceiptofsufficientvotes,theresolutionshallbedeemedtobepassedatthe24th AGM held on 26th day of September, 2015. The chairman shall declare the results of the voting on the resolutions set out in the notice. The results declared along with Scrutinizer’s report shall be placed on the company’s website as well as on the website of Karvy within 2(two) days of passing of the resolutions.


New Delhi (MUKESH AGGARWAL)5th August, 2015 Managing Director

STATEMENT ANNEXED TO THE NOTICE IN RESPECT OF THE SPECIAL BUSINESS PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013.

TheStatementannexedtotheNoticeinrespectoftheSpecialBusinesspursuanttoSection102oftheCompaniesAct,2013isnilasthereisnospecial business on the agenda of the meeting.

SPL InduStrIeS Ltd.

3

BOARD’S REPORT & MANAGEMENT DISCUSSION AND ANALYSISDear Shareholders,

Your Directors have pleasure in presenting the 24th Annual Report together with the Audited Statement of Accounts of SPL INDUSTRIES LIMITED for the year ended 31st March, 2015.

SUMMARISED FINANCIAL HIGHLIGHTS

(Figures in Rupees)

2014-15 Profit/(Loss)beforeExceptional&ExtraordinaryItems 56,73,812 Exceptional items/Extraordinary item –Prior period items (4,54,370)Profit/(Loss)BeforeTax 52,19,442Tax expenses/Adjustments Current Tax (22,086)Earlier years Tax –Deferred Tax –Profit/(Loss)fortheperiod 51,97,356Earning Per Equity Share Basic 0.18Diluted 0.18

DIVIDEND

Inviewofinsufficientprofits,theBoardofDirectorsofyourcompanyhasexpresseditsinabilitytorecommendanydividend.

FIXED DEPOSITS

Duringtheyearunderreview,yourcompanyhasnotacceptedanyfixeddepositsfromthegeneralpublic.

SHARE CAPITAL

During the year under review, your company has not issued any shares or any convertible instruments,

CORPORATE SOCIAL RESPONSIBILITY

Even though the provisions of the Companies Act, 2013 regarding Corporate Social Responsibility are not attracted to the company yet the company has been , over the years, pursuing as part of its corporate philosophy, an unwritten CSR policy voluntarily.

HUMAN RESOURCE

Thewelldisciplinedworkforcewhichhasservedthecompanyforthelastsomanyyearsisthebiggestassetofthecompany.Themanagementhasalways carried out systematic appraisal of performance and imparted training at periodic intervals. The company has always recognized talent and has judiciously followed the principle of rewarding performance.

BUSINESS RISK MANAGEMENT

Although the company has long been following the principle of risk minimization as is the norm in every industry, it has now become acompulsion.

Therefore, inaccordancewithClause49of thelistingagreement, theBoardmemberswere informedaboutriskassessmentandminimizationproceduresafterwhichtheBoardformallyadoptedstepsforframing,implementingandmonitoringtheriskmanagementplansforthecompany.

The main objective of this policy is to ensure sustainable business growth with stability and to promote a pro active approach in reporting ,evaluating andresolvingrisksassociatedwiththebusiness,Businessriskinter-aliaincludesfinancialrisks,politicalriskandlegalrisk.Thebestpolicyistotakeappropriatestepstomitigatethebusinessrisksatthelowestpossiblelevel.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY.

The company has adequate system of internal control to safeguard and protect from loss, unauthorized use or disposition of its assets. All the transaction are properly authorized, recorded and reported to the management. The company is following all the applicable Accounting Standards forproperlymaintainingthebooksofaccountsandreportingthefinancialstatements.Theinternalauditorofthecompanychecksandverifiestheinternal control and monitors them in accordance with policy adopted by the company.

VIGIL MECHANISM/WHISTLE BLOWER POLICY

In order to ensure that the activities of the company and its employees are conducted in a fair and transparent manner by adoption of highest standard of professionalism, honesty, integrity and ethical behavior the company has adopted a vigil mechanism policy.

4

SPL InduStrIeS Ltd.DIRECTORS & COMMITTEES

On 30th June, 2011, the company has appointed the existing independent Directors Sh. Arun Kumar (DIN 01092779),Sh.Rajesh Goyal (DIN03287284),andSh.ChanderjeetSinghBhatia(DIN01360148)foraconsecutivetermof5year.

In accordance with the provisions of Companies Act, 2013 Shri. Vijay Jindal and Sh. Arun Kumar, Directors retires by rotation and being eligible offers himself for re-appointment.

BOARD EVALUATION

Pursuant to theprovisionof theCompaniesAct,2013andclause49of theListingAgreement, theBoardhascarriedoutannualperformanceevaluationof itsownperformance,thedirectors individuallyaswell theevaluationoftheworkingof itsAudit,Nomination&RemunerationandStakeholdercommittee.

REMUNERATION POLICY

TheBoardhasontherecommendationoftheNomination&RemunerationcommitteeframedapolicyforselectionandappointmentofDirectors,Senior Management and their remuneration.

MEETINGS

DuringtheyearnineBoardMeetingwereheld,detailsofwhicharegiveninCorporateGovernanceReport.

AUDIT COMMITTEE

The Company is having an audit committee comprising of the following directors

Sh. Chanderjeet Singh Chairman Non Executive & independent DirectorSh. Arun Kumar Member Non Executive & independent DirectorSh.MukeshAggarwal Member Executive Director

NOMINATION & REMUNERATION COMMITTEE

The Company is having a Nomination and Remuneration Committee comprising of the following directors.

Sh. Chanderjeet Singh Chairman Non Executive & Independent DirectorSh. Rajesh Goyal Member Non Executive & Independent DirectorSh.MukeshAggarwal Member Executive Director

DIRECTOR’S RESPONSIBILITY STATEMENT

AsrequiredbytheCompaniesAct,thisistoconfirmthat:

1. In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures.

2. Such accounting policies have been selected and applied consistently and made judgments/estimates that are reasonable and prudent so astogiveatrueandfairviewofthestateofaffairsoftheCompanyattheendofthefinancialyearandoftheprofitoftheCompanyforthatperiod.

3. Proper and sufficient care have been takenwith best of knowledge and ability, for themaintenance of adequate accounting records inaccordance with the provisions of the said Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

4. The annual accounts have been prepared on going concern basis

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

TherearenosignificantmaterialorderspassedbytheRegulator/Courtswhichwouldimpactthegoingconcernstatusofthecompanyanditsfutureoperations.

AUDITORS

STATUTORY AUDITORS

M/s. Singhi Chugh & Kumar, (FR No. 013613N) Chartered Accountants, has been the statutory Auditors of the Company.

SECRETARIAL AUDITORS

Pursuant to the provisions of Section 204 of the Companies Act, 2013, the company has appointed Sh. V.K. Gupta (CP NO.14362, FCS 6755) CompanySecretarytoundertaketheSecretarialauditofthecompany.

INTERNAL AUDITORS

M/S Vatts & Associates , Chartered Accountant , performs the duties of internal auditors of the company and their report is reviewed by the audit committee from time to time.

SPL InduStrIeS Ltd.

5

CORPORATE GOVERNANCE

Asperclause49ofthelistingagreementwiththestockExchanges,aseparatesectiononcorporategovernancepracticefollowedbythecompanytogetherwithacertificatefromtheAuditorconfirmingcomplianceformsanintegralpartofthisreport.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO.

The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies ( Accounts) Rules, 2014 is annexed herewith.

EXTRACTS OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in form MGT-9 is annexed herewith.

PARTICULARS OF EMPLOYEES

The information required pursuant to Section 197 read with rule,5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of the employees of the company is as follows:

The particulars of the employees who are covered by the provisions contained in Rule5 (2) and Rule (3) of the Companies (Appointment and Remuneration of Managerial Personnel)Rules,2014 are:

a) Employed throughout the year Nil

b) Employed for part of the year Nil

TheremunerationpaidtoallkeymanagementPersonnelwasinaccordancewithremunerationpolicyadoptedbythecompany.Nosittingfeehasbeen paid to any director during the year under review.

ACKNOWLEDGEMENT

YourDirectorswishtoplaceonrecordtheoverwhelmingresponsereceivedfromtheinvestors,financialinstitutions,bankers,businessassociates,suppliers for the consistent support received from them during the year.

YourDirectorswishtoplaceonrecordtheirappreciationfortheteamspirit,dedicationandcommitmentshownbytheworkforceofthecompanyduring this year.

CAUTIONARY STATEMENT

ThestatementscontainedintheBoard’sReportandManagementDiscussionandAnalysiscontaincertainstatementsrelatingtothefutureandthereforeareforwardlookingwithinthemeaningofapplicablesecurities,lawsandregulations.

Variousfactorssuchaseconomicconditions,changeingovernmentregulations,taxregime,otherstatues,marketforcesandotherassociatedandincidental factors may however lead to variation in actual results.


Place : New Delhi (MUKESH AGGARWAL)Date: 5th August, 2015 Managing Director

6

SPL InduStrIeS Ltd.Annexure 1

SECRETARIAL AUDIT REPORTFOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2015

Pursuant to Section 204(1) of the Companies Act,2013 and rule No.9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014

To,The MembersSPL Industries Ltd.DelhiWe have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by SPL Industries Ltd (hereinafter called the company). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.BasedonverificationoftheCompany’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyandalsotheinformationprovidedbythecompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,weherebyreportthatinouropinion,thecompanyhasduringtheauditperiodcoveringthefinancialyearendedon31st March, 2015 complied with the statutory provisionslistedhereunderandalsothattheCompanyhasproperBoard-processesandcompliance–mechanisminplacetotheextent,inthemanner and subject to the reporting made hereinafter:Wehaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbySPLindustriesLtdforthefinancialyear ended on 31st March, 2015 according to the provisions of :(i) The Companies Act, 2013 (the Act) and the rules made there under;(ii) The Securities Contracts (Regulations) Act,1956 (SCRA) and the rules made there under;(iii) TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder;(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the extent of Foreign Direct investment ,Overseas

DirectinvestmentandExternalCommercialBorrowings;(v) TheRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIAct’)viz; (a) TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011; (b) TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,1992; (c) TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009 (d) TheSecuritiesandExchangeBoardofIndia(EmployeesStockOptionSchemeandEmployeesStockPurchaseScheme)Guidelines,

1999; (e) TheSecuritiesandExchangeBoardofIndia(issueandListingofDebtSecurities)Regulations,2008; (f) TheSecuritiesandExchangeBoardofIndia(RegistrartoanissueandShareTransferAgents)Regulations,1993regardingtheCompanies

Act and dealing with client; (g) TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009;and (h) TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,1998;(vi) andotherapplicablelawslikeFactoriesAct,1948,ThePaymentofGratuityAct,1972 We have also examined compliance with the applicable clauses of the following: (i) Secretarial Standards issued by The Institute of Company Secretaries of India (ii) TheListingAgreementsenteredintobytheCompanywithBSE/NSE.During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above except to the extent mentioned below:1. RegardingfulfillmentofcertaincontrolmeasuresaslaiddownbytheCentralControlPollutionBoard(CPCB),managementofthecompany

hastakenorinitiatedstepstocomplywiththerequirednormsoftheCPCB We further report that TheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,NonExecutiveDirectorsandIndependent

Directors. AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednoticeonagendaweresentatleastsevendays

in advance We further report that there are adequate systems and processes in the company commensurate with the size and operations of the company

to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

Place: Delhi Virendra Kumar GuptaDate: 25-05-2015. Company Secretary FCS 6755 C.P. No. 14362

SPL InduStrIeS Ltd.

7

This report is to be read with our letter of even date which is annexed as Annexure A and forms an integral part of this report.

Annexure A

To,The Members SPL Industries Ltd.Delhi

Our report of even date is to be read along with this letter.

1. Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to express an opinion on these secretarial records based on our audit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents oftheSecretarialrecords.Theverificationwasdoneontestbasistoensurethatcorrectfactsarereflectedinsecretarialrecords.Webelievethat the processes and practices, we followed provide a reasonable basis for our opinion.

3. WehavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandBooksandAccountsofthecompany.

4. Where ever required, we have obtained the Management representation about the compliance of laws, rules and regulations and happening of events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards, is the responsibility of management. Ourexaminationwaslimitedtotheverificationofproceduresontestbasis.

6. TheSecretarialAuditreportisneitheranassuranceastothefutureviabilityofthecompanynoroftheefficacyoreffectivenesswithwhichthemanagement has conducted the affairs of the company.

(VIRENDRA KUMAR GUPTA )Date: 25-05-2015 Company SecretaryPlace : Delhi Membership No. F-6755

CertificateofPracticeNo.14362

Annexure 2

A. CONSERVATION OF ENERGY

(a) Energy conservation measures taken:

TheCompanyhastakenvariousmeasuresandstepstoconservetheenergyviz:

• Optimizationandeconomicaluseofvariousformsofenergy.

• CompressorsandCapacitorsinstalledtoimprovepowerfactors.

• Departmentwisemonitoringofenergyconsumption.

• Installationofwindventilators,resultinginsavingofpowercostetc.

(b) Additional Investments and proposals, if any being implemented for reduction in consumption of energy.

There is no such proposal as such for additional investment. The status of power and fuel consumption is given below in Form A

B. PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORPTION,

RESEARCH & DEVELOPMENT

The Company has independent R&D department for its different divisions which regularly provides suggestions for improvement so as to minimize the cost of production and improve the quality.

FOREIGN EXCHANGE EARNING AND OUTGO

Activitiesrelatingtoexports,initiativestakentoincreaseexport,developmentofnewexportmarketsforproductservicesandexportplans:

TherehavebeenconcertedeffortstomaintainexportperformanceinGarments.TheCompanyisalsoexploringmarketsforexportofothervarietiesof its products. During the year under review, the details of the Foreign Exchange earnings and outgo are as under:

Amount in Rs.

Particulars 2014-2015 2013-2014EarningsinForeignCurrenciesFOBvalueofExports – –Expenditure in Foreign Currency – –

8

SPL InduStrIeS Ltd.Form No.MGT-9 Annexure 3

EXTRACTOFANNUALRETURNasonthefinancialyearendedon31st March, 2015 of SPL INDUSTRIES LIMITED (Pursuant to Section 92(1) of the Companies Act, 2013 and rule12(1) of the Companies (Management and Administration) Rule, 2014.)

1. REGISTRATION AND OTHER DETAILS:

CIN L74899DL1991PLC062744Registration Date 06/12/1991Name of the Company SPL INDUSTRIES LIMITEDCategory/Sub-Category of the Company Company limited by sharesAddressoftheRegisteredofficeandcontractdetails C-2/54, 5th Floor, Rajasthali Apartments, Pitampura,Delhi-110034Whether listed Company YesName, Address and contract details of Registrar & Transfer Agent (RTA), if any

Karvy Computershares Private Limited KarvySeleniumTowerB|Plotnumber31&32|FinancialDistrict|Nanakramguda|SerilingampallyMandal|Hyderabad-500032|IndiaP:+9104067161518|

2. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

S. No. Name and Description of main products/service NIC Code of the product/service %to total turnover of the company1 Manufacturing and export of Garments

3. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

S. No. Name & address of the company

CIN/GLN Holding/Subsidiary Associate

% of share held Applicable Section

1 na na Na na na2 na na Na na na

4. SHARE HOLDING PATTERN(Equity Share Capital Breakup as percentage of total Equity) 1. Category-wise Share Holding

CATEGORY CODE

CATEGORY OF SHAREHOLDER NO OF SHAREHOLDERS

TOTAL NUMBER OF SHARES

(I) (II) (III) (IV) (A) PROMOTER AND PROMOTER GROUP (1) INDIAN (a) Individual /HUF 45 18630104(b) Central Government/State Government(s) 0 0(c) BodiesCorporate 1 869900(d) FinancialInstitutions/Banks 0 0(e) Others 0 0 Sub-Total A(1) : 46 19500004

(2) FOREIGN (a) Individuals (NRIs/Foreign Individuals) 0 0(b) BodiesCorporate 0 0(c) Institutions 0 0(d) QualifiedForeignInvestor 0 0(e) Others 0 0 Sub-Total A(2) : 0 0 Total A=A(1)+A(2) 46 19500004

(B) PUBLIC SHAREHOLDING (1) INSTITUTIONS (a) Mutual Funds /UTI 0 0(b) FinancialInstitutions/Banks 0 0(c) Central Government / State Government(s) 0 0(d) Venture Capital Funds 0 0(e) Insurance Companies 0 0(f) Foreign Institutional Investors 1 5000(g) Foreign Venture Capital Investors 0 0(h) QualifiedForeignInvestor 0 0

SPL InduStrIeS Ltd.

9

CATEGORY CODE

CATEGORY OF SHAREHOLDER NO OF SHAREHOLDERS

TOTAL NUMBER OF SHARES

(I) (II) (III) (IV) (i) Others 0 0 Sub-Total B(1) : 1 5000

(2) NON-INSTITUTIONS (a) BodiesCorporate 184 1928997(b) Individuals (i)IndividualsholdingnominalsharecapitaluptoRs.1lakh 8012 3574321 (ii)IndividualsholdingnominalsharecapitalinexcessofRs.1lakh 91 3898460

(c) Others CLEARINGMEMBERS 4 1824 NON RESIDENT INDIANS 67 91398

(d) QualifiedForeignInvestor 0 0 Sub-TotalB(2): 8358 9495000 TotalB=B(1)+B(2): 8359 9500000 Total(A+B): 8405 29000004

(C) Shares held by custodians, against which Depository Receipts have been issued

(1) Promoter and Promoter Group (2) Public 0 0 GRAND TOTAL (A+B+C) : 8405 29000004

2. Shareholding of Promoters

S.No. NAME HOLDING % CENTAGE1 MUKESH AGGARWAL 5772847 20.262 SHASHI AGGARWAL 1410800 4.643 VIPUL AGGARWAL 483641 1.704 KUSHAL AGGARWAL 577453 1.995 NARENDER AGGARWAL 5732802 20.166 KIRAN AGGRWAL 812721 2.837 NISHANT AGGARWAL 1699260 5.288 VIJAY KUMAR JINDAL 400900 1.389 PUNITA JINDAL 575100 1.9810 SUNIL KUMAR JINDAL 321000 1.1111 SUNITA JINDAL 404560 1.4012 SUNIL JINDAL HUF 191700 0.6613 NILESH JINDAL 113720 0.3914 AVNISH JINDAL 93000 0.3215 NAINA JINDAL 40600 0.1416 ELKAY OVERSEAS INDIA 869900 3.00 TOTAL 19500004 67.24

3. Change in Promoters’ Shareholding (please specify, if there is no change)

At the beginning of the year No change during the yearData wise increase/decrease in Promoters shareholding during the year specifying the reasons for increase or decrease (e.g. allotment/ transfer/bonus/sweat/equity etc.)

No change during the year

At the end of the year No change during the year 4. Shareholding of Directors and Key Managerial Personnel:

At the beginning of the year No change during the yearAt the end of the year No change during the year

5. Remuneration of Directors

ExceptMr.MukeshAggarwal,ManagingDirectorofthecompany,nootherDirectorisgettinganymanagerialremunerationoranyotherbenefitinlieuthereof.

6. Penalties/Punishment/Compounding of Offences

No penalties or Punishment was imposed on any Director or the Company during the year under review.

10

SPL InduStrIeS Ltd.REPORT ON CORPORATE GOVERNANCEBOARD COMPOSITION

The Company has 6 Directors of which 3 are non executive independent Directors and 3 are executive Directors including a women Director and a ManagingDirector.ThecompositionoftheBoardisinconformitywithclause49ofthelistingAgreemententeredintowiththestockexchanges

Attendance of Directors at the Board Meetings & AGM and number of Companies in which the director is a member of the Board or its Committees as a member or chairperson thereof during the financial year.

Name of the Director & Designation

Category Board Meetings Held

Board Meetings Attended

No. of Companies in which a Director

No. of Committees in which a Member

No. of Board/ Committees in which a

ChairpersonMr.MukeshAggarwall Chairman & Managing

Director09 09 na 02 09

Mr. Vijay Jindal Director 09 05 na na naMrs. Shashi Aggarwal Women Director 09 09 na na naMr. Rajesh Goyal Non Executive

independent Director09 02 na 01 na

Mr. Arun Kumar Non Executive independent Director

09 02 na 01 na

Mr.ChanderjeetSinghBhatia Non Executive/ Independent Director

09 02 na 02 na

Number of Board Meeting held

TheBoardmeetsninetimesduringtheyearunderreview.

Code of Conduct

TheCodeofconductinlinewiththeprovisionsofclause49oftheListingAgreementhasbeenframed/adoptedbytheBoardandisapplicabletoallthemembersoftheBoardandSeniorManagementExecutives.TheCompanySecretaryistheComplianceOfficerforthepurposeofthiscode.TheCodeenvisagesthattheBoardMembersandSeniorExecutivesobservesthehigheststandardsofethicalconductandintegrityandworktothe best of their ability and judgments

Audit Committee

Duringtheyear,theAuditCommitteeconsistsofMr.ArunKumar,Mr.ChanderjeetSinghBhatia,thenonexecutiveindependentDirectorsandMr.MukeshAggarwal,ManagingDirectoroftheCompany.TheStatutoryAuditors,CFOandInternalauditorsoftheCompanyalsoattendedsuchmeetings.

Power, Role and Review of Information by the Audit Committee

The role and terms of reference of the Audit Committee covers the area mentioned under clause 49 of the Listing Agreement besides other termsasmaybereferredbytheBoardofDirectors.Theseinteraliaincludesreviewofthecompany’sfinancialreportanddisclosureoffinancialinformationtoensurethatthefinancialstatementsarecorrect,sufficientandcredible.ThemainroleoftheauditcommitteeistoreviewannualandquarterlyfinancialstatementswiththemanagementbeforesubmissiontotheBoardandtoinsuretheadequacyofinternalcontrolsystemwiththemanagementandtoreviewthecompany’sfinancialrisks/managementpolicies.

Date and number of Audit Committee Meeting’s held

The Audit Committee meets four times during the year under report.

Attendance of Director

Name of Member Designation No. of Meeting held No. of Meeting attendedMr. Arun Kumar Chairman

Independent Non Executive Director 04 04

Mr.ChanderjeetSinghBhatiaMember

Independent Non Executive Director 04 04

Mr.MukeshAggarwalMember

Executive Non Independent Director 04 04

SPL InduStrIeS Ltd.

11

NOMINATION AND REMUNERATION COMMITTEE

The remuneration committee was renamed and reconstituted as Nomination and Remuneration Committee at a board meeting. The Committee meetings were held on 30/05/2014,08/08/2014,18/11/2014 and 13/02/2015 and the committee meetings were chaired by Sh. Chanderjeet Singh Bhatia.ThedetailoftheRemunerationCommitteeareasunder:

Name of Member Designation No. of Meeting held No. of Meeting attendedMr.ChanderjeetSinghBhatiaChairman Independent Non Executive Director 04 04Mr.Rajesh Goyal Member Independent Non Executive Director 04 04Mr.MukeshAggarwalMember Executive Non Independent Director 04 04

STAKEHOLDER RELATIONSHIP COMMITTEE

Theshareholders/InvestorsGrievanceCommitteewasrenamedandreconstitutedasStakeholdersRelationshipCommitteeandthecommitteeperforms the following functions:

Transfer/Transmission of shares

IssueofDuplicateShareCertificates

Review of Share dematerialization and rematerialization

Monitoring the expeditious redressal of investor grievance.

Monitoring the performance of Registrar and Transfer Agent

All other matters relating to shares.

TheCommitteeconsistsofMr.ChanderjeetSinghBhatia,Mrs.ShashiAggarwalandMr.VijayJindal.Thesaidcommitteenormallymeetsonceinaperiod of three months , to oversee proper re-dressal of grievance of the shareholders/investor’s.

Number of Complaints received, not solved & pending transfer

All complaints received and replied to the entire satisfaction of the shareholders during the year under review. There were no pending complaints ason31stMarch,2015.Thereisnosharetransferoranyothercorrespondencependingformorethanfifteendaysasonthatdate.

General Body Meetings

ThelastthreeannualGeneralMeetingsoftheCompanywereheldon27.09.2014,28.09.2013and29.09.2012atICC,J-2/B-1,MohanCooperative,Mathura Road, New Delhi-44 .

Details of non compliance, penalties etc imposed by Stock Exchange, SEBI etc on any matter related to capital market during the last three years.

NosuchpenaltyorstructurehavebeenimposedonthecompanysincelistingofitssecuritiesonTheNationalStockExchangeofIndiaLtdandTheBombayStockExchangeLtdortheSecuritiesExchangeBoardofIndia(SEBI)oranyotherstatutoryauthorityonanymatterrelatedtotheCapitalMarketduringthelastthreeyears.

Means of Communication

(a) Quarterly Results Through publication(b) News papers wherein results normally published TheBusinessStandard/EconomicsTime

TheNavBharatTimes(Hindi)

General Shareholder InformationAGM 24th Annual General

Meeting will be held on 26th day of September, 2015 at 9.00 AM. Venue INDIA CORPORATE CENTRE

J-2/B-1,EXTENSION,MOHAN COOPERATIVE, MATHURA ROAD, NEW DELHI-110044.

Date of Book Closure

Bookclosureisfrom16th September, 2015 to 26th September, 2015 (both days inclusive)

Listing on Stock Exchange(s)

TheNationalStockExchangeofIndiaLtd.AndBombayStockExchangeLtd.,

ISIN CODE NO. INE978G01016Script Name SPLILScript Code 532651Date of Allotment 18.07.2005

12

SPL InduStrIeS Ltd.Registrar and Transfer Agent:

KARVY COMPUTERSHARES PRIVATE LIMITEDKarvySeleniumTowerB|Plotnumber31&32|FinancialDistrict|Nanakramguda|SerilingampallyMandal|Hyderabad-500032|IndiaP :+9104067161518|

SPL INDUSTRIES LIMITED ( SCRIPT CODE : 532651)

Plant Locations

DuringtheyearunderreviewdyingandknittingactivitieswereperformedbythecompanyandthelocationsoftheplantsoftheCompanyare:

1 SPL Industries Ltd, Plot No.21/6, Faridabad.

2 SPL Industries Ltd., Plot No.22/6, Faridabad.

Address for Correspondence

Registered Office:SPL INDUSTRIES LTDC-2/54, 5TH FLOOR, RAJASTHALI APARTMENTS,PITAMPURA, DELHI-110034.

Corporate Office”SPL INDUSTRIES LTDPlot No.21 Sector-6Faridabad (Haryana)

Declaration

Asprovidedunderclause49oftheListingAgreementwiththeStockExchanges,theBoardMembersandtheSeniorManagementPersonnelhaveconfirmedcompliancewiththeCodeofConductandEthicsfortheperiodendedMarch31,2015.


Place : New Delhi (MUKESH AGGARWAL)Place: 5th August, 2015 Managing Director

SPL InduStrIeS Ltd.

13

AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCETo The Members of SPL Industries Limited

We have examined the compliance of conditions of Corporate Governance by SPL Industries Limited as at 31st March, 2015 as stipulated in Clause 49oftheListingAgreementofthesaidCompanywithStockExchange(s).

The Compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited to the procedures and implementations thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an auditnoranexpressionofopiniononthefinancialstatementsoftheCompany.

In our opinion and to the best of our information and according to the explanations given to us and the representations made by the Directors and the Management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.

As required by the Guidance Note issued by the Institute of Chartered Accountants of India, we have to state that as per the records maintained by the Company, no investor grievance is pending for a period exceeding one month.

WefurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheefficiencyoreffectivenesswithwhichthe management has conducted the affairs of the Company.

For M/S SINGHI CHUGH & KUMAR, Chartered Accountants

Place : New Delhi PARTNERPlace: 05.08.2015 M. NO : 088123

14

SPL InduStrIeS Ltd.INDEPENDENT AUDITOR’S REPORTTO THE MEMBERS OF SPL INDUSTRIES LIMITED

Report on the Financial StatementsWehaveauditedtheaccompanyingfinancialstatementsofSPLINDUSTRIESLIMITED(“theCompany”),whichcomprisetheBalanceSheetasat31stMarch,2015,theStatementofProfitandLoss,theCashFlowStatementfortheyearthenended,andasummaryofthesignificantaccountingpolicies and other explanatory information.Management’s Responsibility for the Financial StatementsTheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinSection134(5)oftheCompaniesAct,2013(“theAct”)withrespecttothepreparationofthesefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceandcashflowsoftheCompanyinaccordancewiththeaccountingprinciplesgenerallyacceptedinIndiaincludingtheAccountingStandardsspecifiedunderSection133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and otherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandare free from material misstatement, whether due to fraud or error.Auditor’s ResponsibilityOurresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WehavetakenintoaccounttheprovisionsoftheAct,theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheaudit report under the provisions of the Act and the Rules made thereunder.WeconductedourauditinaccordancewiththeStandardsonAuditingspecifiedunderSection143(10)oftheAct.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrom material misstatement.Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevanttotheCompany’spreparationofthefinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopiniononwhetherthecompanyhasinplaceanadequateinternalfinancialcontrolssystemoverfinancialreportingand the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonablenessof theaccountingestimatesmadeby theCompany’sdirectors,aswell asevaluating theoverall presentationof thefinancialstatements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financialstatements.OpinionInouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidfinancialstatementsgivetheinformationrequired by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, ofthestateofaffairsoftheCompanyasat31stMarch,2015anditsprofitanditscashflowsfortheyearendedonthatdate.Report on Other Legal and Regulatory Requirements1. AsrequiredbytheCompanies(Auditor’sReport)Order,2015(hereinafterreferredtoas“theOrder”)issuedbytheCentralGovernmentof

Indiaintermsofsub–section(11)ofsection143oftheAct,wegiveintheAnnexureastatementonthemattersspecifiedinparagraphs3and 4 of the order, to the extent applicable.

2. As required by section 143 (3) of the Act, we report that: a. wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthe

purposes of our audit. b. inouropinionproperbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromourexamination

ofthosebooks; c. thebalancesheet,thestatementofprofitandloss,andthecashflowstatementdealtwithbythisReportareinagreementwiththebooks

of account; d. inouropinion,theaforesaidfinancialstatementscomplywiththeAccountingStandardsspecifiedunderSection133oftheAct,readwith

Rule7 of the Companies (Accounts) Rules, 2014; e. on thebasisof thewritten representations received from thedirectorsason31st March,2015 takenon recordby theBoardof

Directors,noneofthedirectorsisdisqualifiedason31stMarch,2015frombeingappointedasadirectorintermsofSection164(2)ofthe Act.

f. with respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. theCompanyhasdisclosedtheimpactofpendinglitigationsonitsfinancialpositioninitsfinancialstatements. ii. the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses,

if any, and as required on long-term contracts including derivative contracts.

SPL InduStrIeS Ltd.

15

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company, however, there is no amount which is required to be transferred.

For Singhi Chugh & KumarChartered Accountants

Firm’s Registration No. 013613N

Harsh KumarNew Delhi PartnerDated: 29.05.2015 M. No. 088123

Annexure to the Independent Auditor’s ReportTheAnnexurereferredtoinourIndependentAuditor’sReporttothemembersofthecompanyonthefinancialstatementsfortheyearended31st

March, 2015, we report that: (i) (a) TheCompanyhasmaintainedproperrecordsshowingfullparticulars,includingquantitativedetailsandsituationoffixedassets. (b) Allfixedassetshavebeenphysicallyverifiedbythemanagementduringtheauditperiodandnomaterialdiscrepancieswerenoticedon

suchverification.(ii) (a) Theinventoryhasbeenphysicallyverifiedduringtheauditperiodbythemanagement.Inouropinion,thefrequencyofverificationis

reasonable. (b) Theproceduresofphysicalverificationofinventoryfollowedbythemanagementarereasonableandadequateinrelationtothesizeof

the Company and the nature of its business. (c) TheCompanyismaintainingproperrecordsofinventoryandnodiscrepancieswerenoticedonphysicalverification.(iii) (a) TheCompanyhasnotgrantedanyloans,securedorunsecured,tocompanies/firms/otherpartiescoveredintheregistermaintained,

onthebasisdeclarationreceivedfromthedirectorsinFormMBP-1,undersection189oftheAct. (b) Sub clauses (a) to (b) of Clause (iii) of the Order are not applicable to the Company.(iv) In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with

thesizeofthecompanyandthenatureofitsbusinesswithregardtopurchaseoffixedassetsandsaleofgoodsandservices.(v) No deposits have been accepted by the Company from public within the meaning of sections 73 to 76 of the Act. (vi) TheCentralGovernment,vianotificationdatedDecember31,2014,hasamendedtheCompanies(CostRecordsandAudit)Rules,2014to

excludecompanieshavingannualturnoverlessthanINR150croresduringimmediatelyprecedingfinancialyear.Asregardspreviousyears,the Company has made and maintained the cost records as prescribed by the Central Government under section 209(1) (d) of the Companies Act, 1956.

(vii) (a) During audit procedures we have found that the Company is regular in depositing undisputed statutory dues including Provident fund, Investor Education and Protection Fund, Employee’s State Insurance, Income Tax, Sales Tax, Service Tax and other material statutory dues applicable to it with the appropriate authorities.

(b) No due of Income Tax/ Sales Tax/ Service Tax/ Custom Duty/ Wealth Tax/ Excise Duty/ Cess are pending on part of the Company on account of any dispute except the following amounts:

S. No.

Name of the Statute Nature of Dues Amount (Rs. Lakhs) Period to which amount relates

Forum where dispute is pending

1 Income Tax Act, 1961 Penalty u/s 271(1)(c) 69.10 AY 2007 – 08 CIT (A)2 Income Tax Act, 1961 Penalty u/s 271(1)(c) 11.44 AY 2010 – 11 CIT (A)

(c) There is no amount required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956.

(viii) TheaccumulatedlossesofthecompanyexceedfiftypercentofitsnetworthasatMarch31,2015andithascashprofits&overallprofitsinthefinancialyearendedonthatdate.

(ix) Asperinformationandexplanationsgiventous,theCompanyhasnotdefaultedinrepaymentofduestoafinancialinstitutionorbankordebenture holders.

(x) Asperinformationandexplanationsgiventous,theCompanyhasnotgivenanyguaranteeforloanstakenbyothersfrombankorfinancialinstitutions.

(xi) Accordingtoinformationandexplanationsgiventous,theCompanyhasnottakenanytermloan.(xii) According to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the

course of audit.

For Singhi Chugh & KumarChartered Accountants

Firm’s Registration No. 013613N

Harsh KumarNew Delhi PartnerDated: 29.05.2015 M. No. 088123

16

SPL InduStrIeS Ltd.Balance Sheet as at 31st Mar, 2015

(All Amounts in Indian Rupees) Particulars Note As at 31st Mar, 2015 As at 31st Mar, 2014Equity And Liabilities

Shareholders Funds Share Capital 1 290,000,040 290,000,040 Reserves And Surplus 2 257,295,427 547,295,467 251,802,792 541,802,832

Non-Current LiabilitiesLongTermBorrowings 3 – – Deferred Tax Liabilities (Net) 4 – – Long-Term Provisions 5 2,625,578 2,625,578 2,155,272 2,155,272

Current Liabilities ShortTermBorrowings 6 53,200,000 – Trade Payables 7 85,720,052 43,330,544 Other Current Liabilities 8 78,939,467 40,695,507 Short Term Provisions 9 3,544,421 221,403,940 2,511,392 86,537,443 Total 771,324,985 630,495,547

Assets Non-Current Assets Fixed Assets

Tangible Assts 10A 485,346,822 520,139,347 Intangible Assets 10B 422,306 484,571

Long-Term Loans And Advances 11 2,165,836 2,043,310 Other Non-Current Assets 12 – 487,934,964 – 522,667,228 Current Assets

Inventories 13 41,908,625 34,297,608 Trade Receivables 14 156,367,868 23,837,052 Cash&BankBalances 15 13,082,981 3,117,584 Short-Term Loans And Advances 16 72,030,547 46,576,072 Other Current Assets 17 – 283,390,022 – 107,828,316 Total 771,324,985 630,495,547

Significant Accounting Policies & Notes on Financial Statements 35 ThenotesareanintegralpartofthesefinancialstatementsThis is the balance sheet referred to in our report of even date

for SINGHI CHUGH & KUMAR For and on behalf of the Board of Directors ofChartered Accountants SPL Industries LimitedFirm Registration No. 013613N

Harsh Kumar (Partner) Managing Director DirectorM. No.088123

Place : New DelhiDate : 29.05.2015

ChiefFinancialOfficer Company Secretary

SPL InduStrIeS Ltd.

17

Statement of Profit & Loss for the year ended 31st March, 2015

(All Amounts in Indian Rupees)

For the Year ended Mar, 2015

For the Yearended Mar, 2014

INCOME

Revenue From Operations 18 597,326,014 455,269,136

Other Income 19 5,161,334 5,245,168

Total Revenue (A) 602,487,349 460,514,304

EXPENSES

Cost Of Material Consumed 20 221,048,038 148,805,791

ChangesInInventoriesOfFinishedGoods,WorkInProgress&StockInTrade 21 (13,474,511) 991,829

EmployeeBenefitsExpenses 22 112,653,377 55,267,384

Finance Costs 23 1,065,477 1,236,945

Depreciation And Amortization Expense 24 39,515,484 34,213,429

Other Expenses 25 236,005,672 190,626,116

Total Expenses (B) 596,813,536 431,141,494

Profit/(Loss) before Exceptional & Extraordinary Items 5,673,812 29,372,810

Exceptional Items/ Extraordinary Items 26 – –

Prior Period Items 27 (454,370) 1,039,022

Profit/(Loss) Before Tax 5,219,442 30,411,832

Tax Expense/Adjustments 28

Current Tax (22,086) (27,010)

Earlier Years Tax – (3,016,892)

Deferred Tax – –

Profit/ (Loss) For The Period 5,197,356 27,367,930

Earnings/(Loss) per equity share: 29

Basic 0.18 0.94

Diluted 0.18 0.94

Significant Accounting Policies & Notes on Financial Statements 35

Thenotesareanintegralpartofthesefinancialstatements

ThisistheStatementofProfitandLossreferredtoinourreportofevendate.





18

SPL InduStrIeS Ltd. Cash Flow Statement for the year ended 31st March, 2015

(All Amounts in Indian Rupees) Particulars For the year ended

March 31, 2015 For the year ended

March 31, 2014 Cash Flows from Operating Activities

Profit/(Loss) before Tax 5,219,442 30,411,832 Adjustments for: Gain On Sale Of Fixed Assets (79,680) – Depreciation and amortisation expenses 39,515,484 34,213,429 Finance Cost 1,039,230 847,561 Loss on sale of assets 8,699,474 Interest Received (210,760) (168,860)Operating Profit before Working Capital Changes 45,483,716 Changes in Working capital Inventory (7,611,017) 29,022,873

Short Term Loan & Advances (25,454,475) 13,925,206 Other Current Asset – 1,013,302 Other Current Liabilities 38,243,960 (49,522,016)Other Non-Current Assets – – Trade Receivables (132,530,816) (15,444,886)Trade Payables 42,389,508 (20,330,676)Long Term Loans & Advances (122,526) (182,099)Provisions 1,503,335 1,266,914

Cash generated from / used in operations (38,098,315) 33,752,053 Taxes Paid (22,086) (3,043,902)

Net Cash Generated from Operating ActivitieS (38,120,401) 30,708,151 Cash Flows from Investing Activity:

Interest Income 210,760 168,860 ChangeInfixedAsset (4,285,731) (4,491,250)

Net Cash Provided by / (used) in Investing Activity (4,074,971) (4,322,390)Cash Flows from Financing ActivityShortTermBorrowings 53,200,000 (31,247,530)Secured Loan – (124,770)Interest&OtherBorrowingCost (1,039,230) (847,561)

Net Cash Used in Financing Activity 52,160,770 (32,219,861) Net Increase/(Decrease) in cash and cash equivalent 9,965,397 (5,834,100) Cash and cash equivalent at the beginning of the period 3,117,584 8,951,684 Cash and cash equivalent at the end of the period 13,082,982 3,117,584

Significant Accounting Policies & Notes on Financial Statements 35 Notes 1. TheabovecashflowstatementhasbeenpreparedundertheindirectmethodsetoutinAS-3andnotifiedunderCompaniesAct,20132. Figuresinbracketsindicatecashoutflows3. The notes to the Financial Statements are an integral part of the Cash Flow StatementThis is the Cash Flow Statement referred to in our report of even date





SPL InduStrIeS Ltd.

19

Notes on Financial Statements for the year ended 31st Mar, 2015 PreviousYearfigureshavebeenregrouped/reclassified,wherevernecessarytoconformtothecurrentyearPresentation.

(Figures in Indian Rupees)Particulars As at

31st Mar, 2015 As at

31st Mar, 2014 1 SHARE CAPITAL1.1 Authorized Share:

3,00,00,000(31st March 2014: 3,00,00,000)equity shares of Rs.10/-each 300,000,000 300,000,000 Issued, Subscribed & Fully Paid Up Shares:2,90,00,004 (31st March 2014: 2,90,00,004) equity shares of Rs.10/- each

290,000,040 290,000,040

Total Issued, Subscribed & Fully Paid Up Share Capital 290,000,040 290,000,040

1.2 Reconciliation of number of shares outstanding at the beginning and at the end of the reporting Period:EquitySharesattheBeginningoftheyear 29,000,004 29,000,004 Add: Shares issued during the year – –Less:SharescancelledonbuybackofEquityShares – –Equity Shares at the end of the Period 29,000,004 29,000,004

1.3 Terms/rights attached to equity sharesThe company has only one class of equity shares having a Par Value of Rs. 10/- Per share. Each holder of Equity Shares entitled to one vote Per share. There is no dividendproposedbytheBoardofDirectors. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company. The distribution will be in proportion to the number of equity shares held by the shareholders.

1.4 Detail of Shareholders holding more than 5% Shares in the CompanyName of Shareholders As at

31st Mar,2015 (No. of Shares) % holding

As at 31st Mar, 2014

(No. of Shares) % holding

Narender Kumar Aggarwal 5,455,602 18.81% 5,455,602 18.81%MukeshKumarAggarwal 5,103,525 17.60% 5,103,525 17.60% Nishant Aggarwal 1,489,380 5.14% 1,489,380 5.14%

Particulars For the Year ended Mar, 2015


2 Reserve & Surplus:2.1 Capital Reserve

AtTheBeginningofTheAccountingperiod 3,107,174 3,107,174 Additions During The Year – At The End of The Accounting period 3,107,174 3,107,174

2.2 Securities Premium AccountAtTheBeginningofTheAccountingPeriod 496,744,853 496,744,853 Additions During The Year – At The End of The Accounting Period 496,744,853 496,744,853

2.3 Revaluation ReserveAtTheBeginningofTheAccountingPeriod 266,065,054 267,356,001 Additions During The Year* – Less:TransferredtoStatementofProfit&Loss – (1,290,947)At The End of The Accounting Period 266,065,054 266,065,054

20

SPL InduStrIeS Ltd.Notes on Financial Statements for the year ended 31st March, 2015

(Figures in Indian Rupees)Particulars For the Year

ended Mar, 2015 For the Year

ended Mar, 2014 2.3.1 Amount Transferred to/from Revaluation Reserve

Amount transferred from Revaluation Reserve to Statement of Profit and Loss onaccountofdepreciationonrevaluedBlockofBuilding

– (1,290,947)

Amount transferred from Revaluation Reserve to Statement of Profit and Loss onaccount of sale of Land

– –

Amount transferred toRevaluationReserve fromStatement of Profit and Loss onaccountofsaleofBuilding

– –

Total – (1,290,947)

2.4 General ReserveAtTheBeginningofTheAccountingPeriod – Additions During The Year – At The End of The Accounting Period –

2.5 Surplus / (Deficit) in the Statement of Profit & LossAsperlastyearsfinancials (514,114,290) (542,773,166)Add:Profit/(loss)fortheyear 5,197,356 27,367,930 Add: Adjustment for Depreciation 295,280 Transferred to/from Revaluation Reserves – 1,290,947 NetSurplus/(Deficit)intheStatementofProfit&Loss (508,621,654) (514,114,289)Total reserves and surplus 257,295,427 251,802,792

*FixedAssetsofthecompanywererevaluedason31stMarch,2012exceptforCar(vehicles),furniture&fixtureandotherequipmentswhose totalnetcarryingamountbefore revaluationoffixedassets is less than5%of the totalnetcarryingamountof totalfixedassets.TheeffectofrevaluationoffixedassetshavebeentakenbyrestatingtheNetBookValuebyaddingthereinthenetincreaseonaccountofrevaluation.

3 Long Term Borrowings3.1 Secured Term Loans From Banks

Current Non Current Current Non Current CarLoanfromBank* – – 126,051 – Total – – 126,051 –

*CarLoanfromICICIbankissecuredagainstthehypothecationofvehicle(HondaCity)carryinginterestrateof12.5%perannum.Theloanis repayable in 36 installments of 19,169/- each starting from 15th November, 2011 till 15th October, 2014. The balance of loan repayable as on 31/03/2015 is NIL.

4 Deferred Tax Liabilities (Net)*Deferred Tax Liabilities 146,844,345 7,366,132 Deferred Tax Assets (146,844,345) (7,366,132)

– – *Refer Note No. 28.1

5 Long-Term Provisions:ProvisionsForEmployeeBenefits*- Compensated Absences – –- Gratuity 2,625,578 2,155,272

2,625,578 2,155,272

* Refer Note No 22 for AS-15 Disclosure

SPL InduStrIeS Ltd.

21

Notes on Financial Statements for the year ended 31st March, 2015(Figures in Indian Rupees)



6 Short-Term Borrowings: Secured BorrowingsLoans Repayable on demand -fromBanks* 38,200,000 Unsecured BorrowingsOther Loans & Advances 15,000,000 –

53,200,000 –

*DemandLoansfromBanksisthePackingCreditLoanfromIndianOverseasBank.Theseloansaresecuredagainsthypothecationofstockmeant for export & Charge on the current assets of the company.

The said loan is collaterally secured against property at Plot No.21, Sector -6, Industrial Area, Faridabad owned by SPL Industries Limited

Loanissecuredbythepersonalguaranteeof:(1)Mr.MukeshKumarAggarwal(2)Mrs.ShashiAggarwal(3)Mr.VijayJindal(4)Mr.NarenderAggarwal. However,thereisnocorporateguaranteeproposed”

7 Trade PayablesSundry Creditors* 85,720,052 43,330,544 85,720,052 43,330,544

*There is no amount payable to any concern covered under Micro, Small and Medium Enterprises Development Act, 2006

8 Other Current LiabilitiesCurrent Maturity of Long Term Debt – 126,051 Interest accrued but not due – –Expenses Payable 5,873,244 5,429,955 EmployeeBenefitPayable 10,978,561 5,790,149 Statutory Dues Payables* 21,380,899 1,203,510 Advance received from customers 40,114,089 27,739,798 Other Loans & Advances** 592,675 406,045 78,939,467 40,695,508

* Statutory Dues Payables includes dues to ESI, PF,Sales Tax, TDS/TCS and Labour Welfare Fund etc ** Includes security deposit from parties

9 Short-Term ProvisionsProvisionsForEmployeeBenefits*- Compensated Absences 2,833,595 1,922,374 - Gratuity 688,740 562,008 Provision for wealth Tax 22,086 27,010 3,544,421 2,511,392

* Refer Note No 22 for AS-15 Disclosure

22

SPL InduStrIeS Ltd.N

otes

on

Fina

ncia

l Sta

tem

ents

for t

he y

ear e

nded

31s

t Mar

ch, 2

015

Not

e 10

- Fi

xed

Ass

ets

Asse

ts A

CTUA

L CO

ST

DEP

RECI

ATIO

N W

RITT

EN D

OW

N VA

LUE

Desc

riptio

n A

s At

A

dditi

ons

Del

etio

ns

As

At

As

At

For

Per

iod

Del

etio

ns

As

At

As

At

As

At

1.4

.201

4 Y

TD

YTD

3

1.03

.201

5 1

.4.2

014

YTD

Ad

just

men

t to

Ret

ined

Ea

rnin

gs

YTD

3

1.03

.201

5 3

1.03

.201

5 3

1.03

.201

4

10A

- Tan

gibl

e As

sets

Land

2

85,5

17,4

00

–

–

285

,517

,400

–

–

–

–

–

2

85,5

17,4

00

285

,517

,400

Bu

ilding

150

,349

,974

–

–

1

50,3

49,9

74

57,

877,

104

4,6

00,2

89

(352

) –

6

2,47

7,04

1 8

7,87

2,93

3 9

2,47

2,87

0 Pl

ant &

Mac

hine

ry 6

57,8

97,9

05

3,4

12,2

02

7,7

49,3

01

653

,560

,806

5

27,2

67,5

66

29,

684,

511

733

,762

6

,701

,881

5

50,9

83,9

57

102

,576

,848

1

30,6

30,3

40

OfficeEquipment

32,

087,

580

1,3

14,4

38

1,4

06,2

88

31,

995,

730

29,

572,

675

1,3

36,3

59

(175

,001

) 1

,406

,288

2

9,32

7,74

5 2

,667

,985

2

,514

,905

Fu

rnitu

re &

Fix

ture

24,

180,

073

224

,667

3

,682

,046

2

0,72

2,69

4 1

6,97

3,35

7 3

,110

,135

(1

,040

,900

) 3

,682

,046

1

5,36

0,54

6 5

,362

,147

7

,206

,716

Ve

hicl

es 4

,034

,115

3

13,4

21

–

4,3

47,5

36

2,2

36,9

98

573

,820

1

87,2

11

–

2,9

98,0

29

1,3

49,5

07

1,7

97,1

17

Tota

l 10A

1,1

54,0

67,0

48

5,2

64,7

27

12,

837,

635

1,14

6,49

4,14

0 6

33,9

27,7

00

39,

305,

113

(295

,280

) 1

1,79

0,21

5 6

61,1

47,3

18

485

,346

,822

5

20,1

39,3

48

Prev

ious

Yea

r 1

,237

,487

,189

8

,420

,160

9

1,84

0,30

1 1,

154,

067,

048

678

,441

,615

3

4,19

7,49

9 7

8,71

1,41

3 6

33,9

27,7

01

520

,139

,347

5

59,0

45,5

74

10B-IntangibleAssets

Com

pute

r Sof

twar

e 2

,226

,102

1

48,1

04

–

2,3

74,2

06

1,7

41,5

32

210

,371

–

–

1

,951

,902

4

22,3

05

484

,571

Total10B

2,2

26,1

02

148

,104

–

2

,374

,206

1

,741

,532

2

10,3

71

–

–

1,9

51,9

02

422

,305

4

84,5

71

Prev

ious

Yea

r 1

,725

,601

5

00,5

01

2,2

26,1

02

1,7

25,6

01

15,

930

–

–

1,7

41,5

31

484

,571

–

G

rand

Tot

al (1

0A +

10B

) 1,

156,

293,

150

5,4

12,8

31

12,

837,

635

1,14

8,86

8,34

6 6

35,6

69,2

32

39,

515,

484

(295

,280

) 1

1,79

0,21

5 6

63,0

99,2

21

485

,769

,126

5

20,6

23,9

19

Prev

ious

Yea

r1,

239,

212,

790

8,9

20,6

61

91,

840,

301

1,15

6,29

3,15

0 6

80,1

67,2

16

34,

213,

429

–

78,

711,

413

635

,669

,232

5

20,6

23,9

18

559

,045

,574

N

OTE

:

1.

Adj

ustm

ent t

o re

tined

ear

ning

are

the

adju

stm

ent i

n pu

rsua

nt to

The

Com

pani

es A

ct 2

013

incl

udin

g th

e de

prec

iatio

n ad

just

men

t on

acco

unt o

f as

sets

who

se u

sefu

lelif

e ha

s be

en

expi

red,

exc

ess

depr

ecia

tion

has

been

cha

rged

in p

revi

ous

year

s et

c.

SPL InduStrIeS Ltd.

23




11 Long-Term Loans And Advances (Unsecured, considered good) Security deposits 2,165,836 2,043,310

2,165,836 2,043,310

12 Other Non-Current Assets FixedDeposit(MarginMoneyagainstbankguarantee) – –

– –

13 Inventories: (AsTaken,Valued&CertifiedByTheManagement)Raw Materials 17,470,119 23,421,488 WorkInProcess 16,004,495 3,392,899 Finished Goods 3,937,254 3,074,339 Stores, Spares & Loose Tools 3,392,757 3,816,995 Fuel & Oil 1,104,000 591,887

41,908,625 34,297,608

14 Trade Receivables:(Unsecured, considered good unless otherwise stated)Outstanding for a period exceeding 6 months from the date they are due for payment – 2,926,323 Others 156,367,868 20,910,729 Less: Allowance for doubtful debts – –Less: Goods in Transit –

156,367,868 23,837,052

15 Cash & Bank Balances : BalanceWithBanks-In Fixed DepositsFixedDeposit(HeldAsSecuritiesagainstBankGuaranteesandLC)Maturity period less than 12 months* 821,600 834,073 On Current Accounts 11,739,174 1,598,757 Cheques in Hand – –

–Cash On Hand 522,207 684,754

13,082,981 3,117,584

*BalancerelatestoGuaranteegiventoHaryanaStatePollutionControlBoard

16 Short Term Loans & Advances:(Unsecured Considered Good Unless Other Wise Stated)Prepaid Expenses 299,986 323,730 Staff Advances 262,201 166,496 Receivable From Revenue Authorities* 79,604,469 – 63,342,046 Less: Provision against Recovery Losses 20,000,000 59,604,469 20,000,000 43,342,046 Advance to suppliers 11,863,891 – 2,743,800

72,030,547 46,576,072

*ReceivablefromvariousstatutorydepartmentsincludingCBECandIncomeTaxAuthorities.

17 Other Current Assets:Other Receivable – –

– –

24


(Figures in Indian Rupees)Particulars As At

31st Mar, 2015As At

31st Mar, 201418 Revenue From Operations

Income Sale Of Products 581,463,869 448,283,696 Other Operating Revenues 15,862,146 6,985,440 597,326,014 455,269,136 Less: Excise Duty – – Net Revenue From Operations 597,326,014 455,269,136

18.1 Sale Of Products Garments

Export 124,392,737 – 17,860,290 Domestic 1,522,264 125,915,001 848,764 18,709,054

Fabric 18,251,371 73,765,886 Yarn – –Processing Charges* 437,297,497 355,808,756 581,463,869 448,283,696

* Processing charges include processing of textiles which includes consumption of raw material.

18.2 Other Operating Revenues DutyDrawback 10,140,671 1,311,087 DGFT Focus (Export Incentive) – – Scrap & Wastage 5,721,475 5,674,353 15,862,146 6,985,440

19 Other Income: Interest Income 210,760 168,860 Net Gain On Sale Of Non - Current Assets 79,680 - Other Non-Operating Income 3,900,000 108,675 Net Gain/Loss on Foreign Currency Transaction & Translation 85,248 692.00 LiabilityWrittenBack 134,203 4,004,184 Claims & Discounts Others 751,444 962,757 5,161,334 5,245,168

19.1 Interest IncomeInterest From Fixed Deposits 210,760 168,860 Interest Others – –

210,760 168,860

19.2 Net Gain On Sale Of Non - Current Assets Fixed Assets(Tangible Assets)* 79,680 – 79,680 –

19.3 Other Non-Operating Income Rent 3,900,000 –Others – 108,675

3,900,000 108,675

20 Cost of Materials Consumed: OpeningStock 23,421,488 51,075,656 Add:-PurchasesRaw-MaterialsAndPackingMaterials 215,096,670 121,151,623 238,518,157 172,227,279 Less:ClosingBalanceOfStock 17,470,119 23,421,488 Consumption Of Materials 221,048,038 148,805,791

SPL InduStrIeS Ltd.

25


As At 31st Mar, 2015


20.1 Cost Of Materials Consumed % of consumption Imported 2% 4,271,838 1% 1,110,987 Indigenous 98% 216,776,200 99% 147,694,804

221,048,038 148,805,791

20.2 Purchase Of Raw Material Accessories Imported 4,271,838 1,110,987 Indigenous 9,958,911 14,230,749 1,107,842 2,218,829 Dyes & Chemical Imported – – –Indigenous 136,789,277 136,789,277 106,255,118 106,255,118 Fabric 26,048,218 8,685,002 Oil & Lubricants 573,605 539,990 PackingMaterial 6,166,235 3,452,684 Yarn 17,316,370 –Garment 13,972,214

215,096,670 121,151,623

20.3 Opening Stock Of Raw Material Dyes & Chemical 7,036,092 5,100,317 Fabric 16,202,275 45,975,339 Accessories 183,121 –

23,421,488 51,075,656

20.4 Closing Stock Of Raw Material Dyes & Chemical 8,044,852 7,036,092 Fabric 7,196,637 16,202,275 Yarn 727,400 – Accessories 1,501,230 183,121 17,470,119 23,421,488

21 Changes In Inventories Finished Goods AtTheBeginningOfTheAccountingPeriod 3,074,339 2,746,800 At The End Of The Accounting Period 3,937,254 3,074,339 (862,915) (327,539)Work-In-ProgressAtTheBeginningOfTheAccountingPeriod 3,392,899 4,712,267 At The End Of The Accounting Period 16,004,495 3,392,899 (12,611,596) 1,319,368 Total (13,474,511) 991,829

22 Employee Benefits Expense Salary,WagesandBonus 98,694,897 48,275,619 Contribution To PF & Other Funds 10,395,096 5,101,948 Gratuity 921,516 628,750 Staff Welfare 2,641,868 1,261,067

112,653,377 55,267,384

As per Accounting Standard 15 “Employee Benefits”, the disclosure as defined in the Accounting Standard are given below: Provision for leave encashment is recognised on the basis of gross pay per day of an employee multiplied with the accumulated leaves as on

the reporting date. No employee has accumulated leaves exceeding 30 days. The same will pay in future . Further there is no long term leave provision for compensated absences as on March 31, 2015.

26


(Figures in Indian Rupees)As At

31st Mar, 2015As At

31st Mar, 2014Defined Contribution PlanContributiontoDefinedContributionPlans,recognisedasexpensefor the year is as under: Employer’s Contribution to Provident Fund 7,102,090 3,399,083 Employer’s Contribution to ESI 3,128,826 1,607,995 Employer’s contribution to Welfare Fund 164,180 94,870 Total 10,395,096 5,101,948

Defined Benefit Plan Theemployee’sgratuityfundschememanagedbyaTrust(LICofIndiaandSBI)isadefinedbenefitplan.Thepresentvalueofobligation

is determined based on actuarial valuation using the Project Unit Credit Method, which recognises each period of service as giving rise to additionalunitofemployeebenefitentitlementandmeasureseachunitseparatelytobuildupthefinalobligation.

1. Reconciliation of Opening and Closing balance of Defined Benefit Obligation

Particulars Current Year Previous YearEmployees

Gratuity FundEmployees

Gratuity FundPresentValueObligation(OpeningBalance) 3,130,168 3,021,922 Interest Cost 281,715 241,754 Past Service Cost – –Current Service Cost 517,729 447,782 BenefitPaid(OutofownFunds+PlanAssets) (501,760) (567,883)Actuarial Gain / Loss on obligation 145,418 (13,407)PresentValueObligation(ClosingBalance) 3,573,270 3,130,168

2. Reconciliation of Opening and Closing balance of Fair Value of Plan Assets

Particulars Current Year Previous YearFairValueofPlan&Assets(OpeningBalance) 412,888 933,392 Expected Return on Plan Assets 31,862 76,299 Contributions – –BenefitsPaid(OutofPlan) (177,282) (567,883)Actuarial Gain/ Loss on obligation (8,516) (28,920)FairValueofPlan&Assets(ClosingBalance) 258,952 412,888

3. Reconciliation of Fair Value of Assets and Obligation



Gratuity FundPresentValueObligation(ClosingBalance) 3,573,270 3,130,168 FairValueofPlanAssets(ClosingBalance) 258,952 412,888 Funded Status 3,314,318 2,717,280 PresentValueofUn-fundedObligation(ClosingBalance) – –Un-funded Actuarial (Gain/Loss) – –Un-fundedNetAssets/LiabilitiesrecognisedinBalancesheet 3,314,318 2,717,280

4. Expenses recognised during the year



Gratuity FundCurrent Service Cost 517,729 447,782 Past Service Cost – –Interest Cost 281,715 241,754 Expected Return on Plan Assets (31,862) (76,299)Cutailment Cost – –Settlement Cost – –Net Actuarial Gain/Loss recognised during the year 153,934 15,513 TotalExpensesRecognisedinStatementofProfit&Loss 921,516 628,750

SPL InduStrIeS Ltd.

27

Notes on Financial Statements for the year ended 31st March, 2015 5. Actuarial Assumption

Actuarial Assumptions Current Year Previous YearEmployees


Gratuity FundDiscount Rate Per Annum 7.80% 9.00%Rate of Increase in Compensation Levels 6.00% 6.00%Rate of Return on Plan Assets(i) For Asset with LIC 9.00% 6.75%(ii)ForAssetwithSBILifeInsurance 9.00% 9.00%ExpectedAverageRemainingWorkinglivesofemployees(Years) 20.66 Yrs 20.89 Yrs

Theestimatesof futuresalary increases, considered inacturial valuation , takeaccountof inflation, seniority,promotionandotherrelevantfactorssuchassupplyanddemandfactorsintheemploymentmarket.

6. The Enterprise best estimates of contribution during the next year is Rs. 7,42,552/- as per acturial certificate.


31st Mar, 2015As At

31st Mar, 2014 23 Finance Cost

Interest Expense 262,971 751,773 Penal Interest 26,247 3,914 BankCharges 776,259 95,788 Export Fluctuation – 385,470

1,065,477 1,236,945

24 Depreciation And Amortization Expense Depreciation on Tangible Assets 39,515,484 34,213,429 39,515,484 34,213,429

25 Other Expenses Manufacturing Expense 199,778,509 136,482,917 Establishment Expenses 24,366,487 38,941,147 Selling & Distribution Expenses 11,699,407 6,124,859 Amount Written Off 161,269 377,720 Loss On Sale Of Fixed Asset – 8,699,474

236,005,671 190,626,116

25.1 Manufacturing Expense : Consumption Of Stores And Spare Parts 3,222,050 2,366,901 Power & Fuel 117,592,910 101,396,632 Freight Inward 1,151,196 551,158 ETP Expense 1,537,910 1,698,738 Repair To Machinery –

Boiler 8,447,875 3,186,636 Electric 1,900,772 1,892,870 Generator 902,866 77,496 Machinery 10,638,829 11,444,255

Job Charges 53,437,617 12,974,841 Lab Expenses 619,912 542,958 Loading & Unloading Charges 326,571 350,432

199,778,509 136,482,917

25.1.1 Consumption Of Stores And Spare Parts OpeningStock 3,816,995 3,752,373 Purchase during the Year 2,797,812 2,431,523 ClosingStock 3,392,757 3,816,995 Consumption during the year 3,222,050 2,366,901

28



31st Mar, 2015As At

31st Mar, 201425.1.2 Consumption Of Power & Fuel

OpeningStock 591,887 1,033,385 Purchase during the Year 118,105,023 100,955,134 ClosingStock 1,104,000 591,887 Consumption during the year 117,592,910 101,396,632

25.2 Establishment Expenses Advertisement 91,801 88,179 Payment to Auditors 926,970 846,632 Donation 22,000 24,600 Rent 40,380 24,000 General Expenses 2,177,836 1,070,812 Rates & Taxes 2,168,004 1,745,152 Provision for Sales Tax Demand 1,395,720 General Repairs 5,512,840 7,827,605 House Keeping Expenses 3,780,578 2,379,249 Insurance 226,157 214,596 Printing & Stationery 1,612,443 1,035,399 Professional Charges 1,361,508 797,712 Provision Against Recovery – 20,000,000 Security Service Charges 2,998,541 2,089,116 SecurityForfieted 81,409 –Telephone Expenses 1,970,300 798,095

24,366,488 38,941,147

25.2.1 Payment to Auditors Statutory Audit Fee 561,800 561,800 Tax Audit Fee 56,180 56,180 TaxMatter&Certification 308,990 228,652

926,970 846,632

25.3 Selling & Distribution Expenses BusinessPromotion 912,991 909,170 Clearing & Forwarding 2,403,728 –Commission 850,205 –Freight 2,608,777 3,896,971 Sampling & Testing Charges 4,923,706 1,318,718

11,699,407 6,124,859

25.4 Amount Written Off Tangible Assets Written off – –Balanceswrittenoff (258,892) 377,720 Claims & Discounts Export 420,160 –BadDebts – –

161,269 377,720

25.5 Value of Imports On CIF basis in respect of: RawMaterialandStockinTrade 4,766,190 91% – 0%Stores,ChemicalsandpackingMaterials 474,796 9% 1,707,076 100% Capital goods – 0% – 0%

5,240,986 100% 1,707,076 100%

SPL InduStrIeS Ltd.

29




26 Exceptional Items/ Extraordinary Items Depreciation – – Derivative Loss * – – Interest Waiver – –

– –

27 Prior Period Items Prior period incomes 269,555 1,396,781 Prior period expenses (723,925) (357,759)

(454,370) 1,039,022

28 Tax Expenses Tax Paid For Earlier Years – 3,016,892 Current Tax - Wealth Tax 22,086 27,010 Deferred Tax – –

22,086 3,043,902

28.1 Deferred Tax Expense/Income:Deferred tax liability at the year end comprise of the followings: AS at 31.03.2015 AS at 31.03.2014Deferred liability on account of:Depreciation 146,844,345 146,844,345 7,366,132 7,366,132 Deferred Assets on account of:Disallowanceundersection43B 1,244,785 1,251,040 Disallowance against provison – Loss under Income Tax Act 370,941,517 370,941,517

372,186,302 146,844,345 372,192,557 7,366,132 Net Deferred Tax Asset/Liability – –

28.2 Deferred Tax Assets recognized to the extent of Deferred Tax Liability for the year ending 31st March 2015.

28.3As the company has substantial losses and value of the business has reduced substantially .Also there is huge fixed cost relating todepreciation.InviewoffactsstatedaboveandkeepinginviewthefinancialpositionofthecompanytheDeferredTaxAssetsinrespectofcarry forward losses has been recognized only to the extent of Deferred Tax Liability.

29 Earnings/(Loss) per equity shareLoss after Tax 5,197,356 27,367,930 Number of shares 29,000,004 29,000,004 BasicEarning/(Loss)PerShare 0.18 0.94 Diluted Earning/(Loss) Per Share 0.18 0.94

30 Earnings In Foreign Exchange

FOBvalueofexports 108,629,989 17,860,290 108,629,989 17,860,290

31 Related Party Disclosure Key Management Personnel (KMP) ShMukeshAggarwal Sh Vijay Jindal Smt. Shashi Aggarwal Sh. Arun Kumar Sh. Rajesh Goyal Sh.ChanderjeetSinghBhatia

Related Party Transactions:

Transaction with Sh.Mukesh AggarwalAmountofLoanBorrowed:OpeningBalanceofLoan – –Amount borrowed during the period 15,000,000 –Amount outstanding at the end of the period 15,000,000 –

30

SPL InduStrIeS Ltd.

32 Segment Reporting AsperAccountingStandardAS17on“SegmentReporting”segmentinformationisasfollow:-

Primary Segment Reporting (Business Segment): Primarybusinesssegmentsofthecompanyissale&exportofcottonknittedgarmentsandmadeupsandProcessingCharges,whichin

thecontextofAccountingStandard17on “SegmentReporting”asnotified inCompanies (AccountingStandard )Rules ,2006 .But themanufacturingrelatingtocottonknittedgarmentsandprocessingchargesiscommonthereforetheexpenditure,assets&liabilitiesrelatingtothesetwoactivitiescannotbebifurcated.Salerelatingtosaleofknittedgarmentsandprocessingchargesisshownseparately.

Secondary Segment Reporting (Geographical Segments): The Following is the distribution of the company’s consolidated sales by geographical segment, regardless of where the goods were

produced:

Particulars Current Year Previous Year SalestoOverseasMarket 124,392,737 17,860,290 SalestoDomesticMarket 1,522,264 848,764 Processing Charges 437,297,497 355,808,756

563,212,498 374,517,810 Export debtors 62,009,086 9,346,024 Domestic debtors 94,358,782 14,491,028

156,367,868 23,837,052 33 Contingent Liability and Commitments

Particulars As at 31.03.2015

As at 31.03.2014

1. BillsDiscounted –2. Disputed tax liability * 77,748,473 77,749,273

Total 77,748,473 77,749,273 * Disputed tax liability pertains to tax amount involved in appeals

34 Thepreviousyearfigureshavebeenregrouped/reclassified,wherevernecessarytoconformtothecurrentyearpresentation.35 Significant Accounting Policies & Notes on Financial Statements1 General Information The company was incorporated on December 6, 1991 in India. The company is a garment manufacturing company and majorly deals in

exports however during the year, value of exports are INR 124,392,737 and further company has domestic sales and processing income during the year.

2 Summary of Significant Accounting Policies2.1 Basis Of Preparation Of Financial Statements The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India

(IndianGAAP).Thefinancialstatementshavebeenprepared tocomply inallmaterial respectswith thenotifiedaccountingstandardbyCompanies(AccountingStandards)Rules,2006,(asamended)andtherelevantprovisionsofCompaniesAct,2013.thefinancialStatementshavebeenpreparedunderthehistoricalcostconventiononanaccrualbasisAccountingpoliciesnotspecificallyreferredtootherwiseareconsistent and are in consonance with generally accepted accounting principles.

Allassetsandliabilitieshavebeenclassifiedascurrentornon-currentaspertheCompany’snormaloperatingcycleandothercriteriasetoutintheScheduleIIItotheCompaniesAct,2013.Basedonthenatureofproductsandthetimebetweentheacquisitionofassetsforprocessingand their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current –noncurrentclassificationofassetsandliabilities.

2.2 Use Of Estimates ThepreparationofthefinancialstatementsinconformitywithgenerallyacceptedaccountingprinciplesinIndiarequiresthemanagementto

makejudgements,estimatesandassumptionsthataffectthereportedamountsofrevenues,expenses,assetsandliabilitiesanddisclosuresrelatingtocontingentliabilities,attheendofthereportingperiod.Althoughtheseestimatesarebasedonthemanagement’sbestknowledgeof current events and action, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods

2.3 Tangible Assets Tangible Assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulated depreciation and

impairmentloss,ifany.Revaluationeffectistakenbyrestatingthenetbookvaluebyaddingthereinthenetincreaseonaccountofrevaluation.Allcosts,includingfinancecoststillcommencementofcommercialproduction,netchargesonforeignexchangecontractsandadjustmentsarisingfromexchangeratevariationsattributabletothefixedassetarecapitalised.

2.4 Intangible Assets InaccordancewiththeAccountingStandards(AS)26relatingtointangibleassets,allcostsincurredontechnicalknow-how/ licensefee

relatingtoproductionprocessarechargedtorevenueintheyearofincurrence.Costsincurredontechnicalknow-how/licensefeerelatingto

Notes on Financial Statements for the year ended 31st March, 2015

SPL InduStrIeS Ltd.

31

process design / plants / facilities are capitalized at the time of capitalization of the said plant / facility and amortized on pro-rata basis over a periodoffiveyears.Computersoftwareiscapitalizedonthedateofinstallationandisamortizedoveraperiodofthreeyears.

2.5 Depreciation DepreciationonallplantandmachineryisprovidedonWrittenDownValueMethodandonotherfixedassetsisprovidedonthebasisof

Straight Line Method. Depreciation has been provided on the basis of useful life of the assets and the manner as prescribed in Schedule II of The Companies Act 2013. Following useful life were used for calculating depreciation amount as per Schedule II of The Companies Act 2013: Particulars Useful Life (in Years)FactoryBuilding 30 YearsPlant & Machinery 15 YearsElectric Installation & Equipment 10 YearsGeneral Laboratory Equipment 10 YearsOfficeEquipments 5 YearsServers&Networks 6 YearsEnd User Devices (Computer) 3 YearsFurniture & Fixtures 10 YearsMotor Cycles 10 YearsMotorBuses 10 Years

2.6 Impairment Of Assets Assessment is done at each Balance Sheet date as to whether there is any indication that an asset (tangible and intangible)may be

impaired.Forthepurposeofassessingimpairment,thesmallestidentifiablegroupofassetsthatgeneratescashinflowsfromcontinuingusethatarelargelyindependentofthecashinflowsfromotherassetsorgroupsofassets,isconsideredasacashgeneratingunit.Ifanysuchindication exists, an estimate of the recoverable amount of the asset/cash generating unit is made. Assets whose carrying value exceeds their recoverable amount are written down to the recoverable amount. Recoverable amount is higher of an asset’s or cash generating unit’s net sellingpriceanditsvalueinuse.Valueinuseisthepresentvalueofestimatedfuturecashflowsexpectedtoarisefromthecontinuinguseofanassetandfromitsdisposalattheendofitsusefullife.AssessmentisalsodoneateachBalanceSheetdateastowhetherthereisanyindication that an impairment loss recognised for an asset in prior accounting periods may no longer exist or may have decreased.

2.7 Investments Investments thatare readily realizableand intended tobeheld fornotmore thanayearareclassifiedascurrent investments.Allother

investmentsareclassifiedaslong-terminvestments. Current investments are carried at lower of cost or fair value. Long-term investments are carried at cost. Provision for diminution in value is made to recognise a decline other than temporary in the value

of the investments.2.8 Inventory Inventories are valued at lower of cost or net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of

purchase, cost of conversion and other costs including manufacturing overhead incurred in bringing them to their respective present location andcondition.Costofrawmaterials,processchemicals,storesandspares,packingmaterial,tradingandotherproductsaredetrerminedonFirst in First out (FIFO) method. Scrap is valued at net realizable value.

2.9 Revenue Recognition i) Salesarerecognisedwhenthesubstantialrisksandrewardsofownershipinthegoodsaretransferredtothebuyerasperthetermsof

the contract and are net of trade discounts, rebates and sales taxes, etc. ii) Processing Charges are recognised at the time of dispatch of goods to the customers and are net of trade discounts, rebates and sales

taxes, etc. iii) Interestincomeisrecognisedonatimeproportionbasistakingintoaccounttheamountoutstandingandtherateapplicable. iv) IncomefromdutydrawbackandImportlicencesunderfocusproductschemearerecognisedonaccrualbasisonacceptanceofclaim

by the Government Authority. v) Dividend Income is recognised when right to receive is established. vi) Claim receivables are accounted for depending on the certainty of receipt and claims payable are accounted for at the time of

acceptance.2.10 Borrowing Cost: Borrowingcoststhatareattributabletotheacquisitionorconstructionofqualifyingassetsarecapitalizedaspartofthecostofsuchassets.A

qualifyingassetisonethatnecessarilytakessubstantialperiodoftimetogetreadyforintendeduse.AllotherborrowingcostsarechargedtoStatementofProfitandLoss.

2.11 Foreign Currency Transactions Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of transaction. Monetary

items denominated in foreign currencies outstanding at the year-end are translated at exchange rate applicable as of that date. Non-Monetary items denominated in foreign currency are valued at the exchange rate prevailing on the date of transaction. Any income or expense on accountofexchangedifferenceeitheronsettlementorontranslationisrecognizedintheStatementofProfitandLoss.

Notes on Financial Statements for the year ended 31st March, 2015

32

SPL InduStrIeS Ltd.2.12 Current And Deferred Tax Tax expense comprises of current tax and deferred tax. Current tax is determined in accordance with relevant tax rates and tax laws. Provision

forcurrentincometaxismadeaftertakingcreditforallowancesandexemptions.Incaseofmattersunderappeal,duetodisallowanceorotherwise, provision is made when the company accepts the said liabilities.

Deferred tax is recognised for all timing differences arising between taxable income and accounting income based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are carried forward to the extent that there is reasonable certaintythatsufficientfuturetaxableincomewillbeavailableagainstwhichsuchdeferredtaxassetscanberealised.Deferredtaxassetsoncarry forward of unabsorbed depreciation and tax losses are recognised only if there is virtual certainty that such deferred tax assets can be realisedagainstfuturetaxableprofits.

Asthecompanyhassubstantiallossesandvalueofthebusinesshasreducedsubstantially.Thereishugefixedcostrelatingtodepreciation.Inviewoffactsstatedaboveandkeepinginviewthefinancialpositionofthecompany,theDeferredTaxAssetsinrespectofcarryforwardlosses has been recognized only to the extent of Deferred Tax Liability.

2.13 Employee’s Benefits i. Short-termemployeebenefitsarerecognizedasanexpenseattheundiscountedamountintheStatementofProfitandLossoftheyear

in which related service is rendered. ii. EligibleemployeesofthecompanyareentitledtoreceivebenefitsundertheProvidentFundschemeadministeredthroughprovidend

fundcommissionerandthecompany’scontributionarechargedtoStatementofProfitandLoss. iii. Company’scontributiontostateplansnamelyEmployeesStateInsuranceFundischargedtoStatementofProfitandLosseveryyear. iv. Gratuityliabilityisadefinedbenefitobligationandisprovidedforonthebasisofanactuarialvaluationmadebyanindependentactuary

attheBalanceSheetdateusingprojectedunitcreditmethod.TheGratuitySchemeisadministeredthroughLICunderitsGroupGratuityScheme. Contributions are paid to LIC in accordance with the demands received.

v. Terminationbenefitsarerecognizedasanexpenseimmediately. vi. GainorLossarisingoutofactuarialevaluationisrecognizedimmediatelyintheStatementofProfitandLossasincomeorexpense.2.14 Value Added Tax (VAT) VATclaimedoncapitalassetsiscreditedtoassets/capitalworkinprogressaccount.VATonpurchaseofrawmaterialsandothermaterials

are deducted from the cost of such materials.2.15 Provision And Contingent Liabilities Show cause notices issued by various government authorities are not considered as obligation. When the demand notice are raised against

suchshowcausenoticeandaredisputedbythecompanythentheseareclassifiedaspossibleobligations. Provisions:Provisionsarerecognisedwhenthereisapresentobligationasaresultofapastevent,itisprobablethatanoutflowofresources

embodyingeconomicbenefitswillberequiredtosettletheobligationandthereisareliableestimateoftheamountoftheobligation.ProvisionsaremeasuredatthebestestimateoftheexpenditurerequiredtosettlethepresentobligationattheBalancesheetdateandarenotdiscountedto its present value.

Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which willbeconfirmedonlybytheoccurrenceornonoccurrenceofoneormoreuncertainfutureeventsnotwhollywithinthecontrolofthecompanyorapresentobligationthatarisesfrompasteventswhereitiseithernotprobablethatanoutflowofresourceswillberequiredtosettleorareliable estimate of the amount cannot be made.

2.16 Financial Derivative And Hedging Transaction InrespectoftheFinancialderivativecontractsthepremium/interestpaidandprofit/lossonsettlementischargedtoStatementofProfit&

Loss.Thecontractsenteredintoaremarkedtomarketatyearendandtheresultantprofit/lossischargedtoStatementofProfit&Loss.2.17 Cash and Cash Equivalents Inthecashflowstatement,cashandcashequivalentsincludescashinhand,demanddepositswithbanks,othershort-termhighlyliquid

investments with original maturities of three months or less.2.18 Earnings Per Share Basicearningspershare iscalculatedbydividingthenetprofitor lossfor theperiodattributable toequityshareholdersbytheweighted

average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company’s earnings per share is thenetprofit for theperiodafterdeductingpreferencedividendsandanyattributabletaxtheretofor theperiod.Theweightedaveragenumber of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources.Forthepurposeofcalculatingdilutedearningspershare,thenetprofitorlossfortheperiodattributabletoequityshareholdersandthe weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.


Harsh Kumar (Partner) Managing Director DirectorM. No.088123 Place : New DelhiDate : 29.05.2015


Documents

SPL InduStrIeS Ltd. · · 2015-08-20SPL InduStrIeS Ltd. 1 SPL InduStrIeS Ltd. CIN : ... 2014-15 Profit/(Loss) before Exceptional & Extraordinary Items 56,73,812 ... SHARE CAPITAL